Wednesday, April 21, 2010
EC Letter Deadline
Please forward your letter to me by Saturday, May 1. I will forward all letters to the United States Trustee on Monday, May 3.
Friday, April 16, 2010
Things to include in your EC letter
I have received requests for guidance in writing a letter. Here are some things that I feel are important.
1. Detail the number of shares you and any joint-owners hold (this is critical).
2. Express your desire in having an Official Equity Committee formed.
3. List areas of concern with the First Amended Disclosure Statement.
- Each record holder has the right to subscribe for and purchase not less than $50,000 of New Equity (NE Rights), provided, however, that in the event more than 200 Record Date Holders subscribe for NE Rights, only the Top 200 Holders will be eligible and permitted to actually subscribe. All shareholders should have the right to participate in the rights offering.
- Current management controls 51.9 percent of MMPI equity. The plan represents a "management plan".
- The rights offering proposes raising $10 million - a very small amount for a company. The company can easily exit Chapter 11 with more cash on hand if all shareholders could participate.
4. State your concern that MMPI will exit bankruptcy as a non-filing company. A Form 15 was filed on 1/19/10 with SEC, terminating registration of common shares.
5. Explain that the Official Equity Committee could help all shareholders benefit working with third-party plan proponents.
I hope this helps!
Sunday, April 11, 2010
It is time for shareholders to take action.
Meruelo Maddux Properties, Inc (MMPIQ) has until June 11, 2010 to solicit and obtain acceptances of their Debtor plan, unless extended. The plan in its current form, in my opinion, can best be described as a "management plan".
Chairman and CEO Richard Meruelo owns 39.9 million shares or 45.3 percent, while President and COO John Maddux owns 5.8 million shares or 6.6 percent. The improvement in the newest plan is limited. Each holder of has the right to subscribe for and purchase not less than $50,000 of new equity, provided, however, that in the event that more than 200 holders subscribe for New Equity Interests, only the top 200 holders will be eligible.
The amount to be raised in the proposed rights offering is only $10 million - a token amount for a company of its size. The latest Monthly Operating Report Number 12 (month-ending February 28, 2010) details over $200 million combined stockholders' equity for a company with $523 million in assets.
It also appears that MMPI's intent was to exit bankruptcy as a non-filing company. The company filed a Form 15 with the Securities and Exchange Commission on January 19, 2010.
All shareholders should not only have an equal opportunity to participate in the rights offering but also benefit from any potential third party proponent wanting to make a larger equity investment.
Several creditors and two shareholders have filed objections to the First Amended Disclosure Statement. I do not believe this will be the final Debtor plan. The Creditors' Committee also has the opportunity to submit its own plan on May, 18, 2010
Today, we have no voice.
I hope to facilitate change. Personally, I will be sending a letter tomorrow to the United States Trustee seeking the appointment of an equity committee. I recommend that other shareholders to do the same. I would like to create a united front.
I will borrow a page from the game plan used by the successful WaMu equity group. That group collected letters centrally and presented nine binders filled with letters to the court. I will forward all letters to the United States Trustee assigned to this case, Ms. Jennifer L. Braun. This is outlined in my letter. If you are interested in joining me, please send your letters to:
MMPI Equity Committee
P.O. Box 850515
Mesquite, TX 75185-0515
Although I would like to collect as many letter as I can, you are also free to send it yourself. Here is the address:
U.S. Department of Justice
Attn: Ms. Jennifer L. Braun, Esq.
United States Trustee (SV)
21051 Warner Center Lane
Suite 115
Woodland Hills, CA 91367
When writing your letter, please address it to the Trustee. Do not forget to include is the number of shares you own.
Chairman and CEO Richard Meruelo owns 39.9 million shares or 45.3 percent, while President and COO John Maddux owns 5.8 million shares or 6.6 percent. The improvement in the newest plan is limited. Each holder of has the right to subscribe for and purchase not less than $50,000 of new equity, provided, however, that in the event that more than 200 holders subscribe for New Equity Interests, only the top 200 holders will be eligible.
The amount to be raised in the proposed rights offering is only $10 million - a token amount for a company of its size. The latest Monthly Operating Report Number 12 (month-ending February 28, 2010) details over $200 million combined stockholders' equity for a company with $523 million in assets.
It also appears that MMPI's intent was to exit bankruptcy as a non-filing company. The company filed a Form 15 with the Securities and Exchange Commission on January 19, 2010.
All shareholders should not only have an equal opportunity to participate in the rights offering but also benefit from any potential third party proponent wanting to make a larger equity investment.
Several creditors and two shareholders have filed objections to the First Amended Disclosure Statement. I do not believe this will be the final Debtor plan. The Creditors' Committee also has the opportunity to submit its own plan on May, 18, 2010
Today, we have no voice.
I hope to facilitate change. Personally, I will be sending a letter tomorrow to the United States Trustee seeking the appointment of an equity committee. I recommend that other shareholders to do the same. I would like to create a united front.
I will borrow a page from the game plan used by the successful WaMu equity group. That group collected letters centrally and presented nine binders filled with letters to the court. I will forward all letters to the United States Trustee assigned to this case, Ms. Jennifer L. Braun. This is outlined in my letter. If you are interested in joining me, please send your letters to:
MMPI Equity Committee
P.O. Box 850515
Mesquite, TX 75185-0515
Although I would like to collect as many letter as I can, you are also free to send it yourself. Here is the address:
U.S. Department of Justice
Attn: Ms. Jennifer L. Braun, Esq.
United States Trustee (SV)
21051 Warner Center Lane
Suite 115
Woodland Hills, CA 91367
When writing your letter, please address it to the Trustee. Do not forget to include is the number of shares you own.
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